Hims & Hers Health Stock Is Tumbling Thursday: Here's Why
Portfolio Pulse from Adam Eckert
Hims & Hers Health Inc (NYSE:HIMS) shares are falling due to the FDA's removal of Eli Lilly's (NYSE:LLY) diabetes and weight-loss drugs from the shortage list. This impacts Hims & Hers, which sells compounded versions of these drugs. Eli Lilly's improved supply may reduce demand for compounded alternatives.
October 03, 2024 | 1:31 pm
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POSITIVE IMPACT
Eli Lilly's supply of diabetes and weight-loss drugs meets demand, leading to removal from FDA shortage list, potentially reducing competition from compounded drugs.
Eli Lilly's ability to meet demand for its drugs and removal from the FDA shortage list reduces the need for compounded alternatives, potentially boosting its market position and stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Novo Nordisk's drugs remain on the FDA shortage list, maintaining demand for compounded versions, unlike Eli Lilly's drugs.
While Eli Lilly's drugs are no longer in shortage, Novo Nordisk's drugs remain on the FDA shortage list, which may sustain demand for compounded versions, having a neutral impact on its stock.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Hims & Hers Health shares are down as Eli Lilly's drugs are no longer on the FDA shortage list, reducing demand for Hims & Hers' compounded versions.
Hims & Hers Health's business model relies on selling compounded versions of drugs that are in shortage. With Eli Lilly's drugs no longer in shortage, the demand for compounded versions is likely to decrease, negatively impacting Hims & Hers' stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100